While car sales are in China has recovered strongly, German car manufacturers are still lagging behind in their most important market. The car market in the Middle Kingdom grew by around 15 percent from January to September this year compared to the same period last year, as industry expert Ferdinand Dudenhöffer (71) announced. Volkswagen, bmwHowever, according to his figures, Mini and Mercedes-Benz sold fewer cars during the period than in 2021.
With a view to the market shares, the German manufacturers have lost a lot of feathers in the first nine months: VW’s market share shrank from 17.5 to 14.1 percent, at Mercedes it went down from 4.1 to 3.4 percent, at BMW from 4.6 to 3.5 percent. In the period from July to September, however, the three manufacturers reported that sales figures were picking up again.
VW market share shrinks to 14.1 percent
“The competitive environment has increased significantly, and the products of the Germans have lost a bit of their shine,” said Dudenhöffer. In the battery business, the Germans are just about in the middle – battery-electric vehicles in China are made by the US group Tesla or made by the Chinese manufacturers BYD or Nio. Also with the software functions popular in China and with the autonomous driving the manufacturers lagged behind Germany after.
Volkswagen and Audi, for example, had problems with some models in what was by far the most important market in finding customers’ tastes precisely. For example, Chinese consumers missed special on-board software and entertainment functions that are often standard among domestic providers. With such equipment, there is a clear need to catch up, according to high-level decision-makers in Wolfsburg: “There is an expectation that electric mobility will be presented as something cool, modern, future-oriented.” This includes the goal of developing more locally in order to better meet these demands.
Need for improvement in terms of equipment
In 2022, VW wants to return to sales figures like before the Corona crisis. In particular, deliveries of the electric ID series, which initially started below expectations, should continue to increase. BMW also has big plans in China. By 2030, Munich wants to sell more than half of its all-electric cars there. In February, they took over the majority in the Chinese joint venture BMW Brilliance Automotive (BBA), and in June another plant, primarily for electric cars, was added at the world’s largest BMW site in Shenyang.
The US electric car manufacturer Tesla is meanwhile trying to United States and Canada with discounts against the decreasing desire to buy. The Tesla Model 3 and Y, which will ship later this year, will be discounted over $7,500 in the US and over $5,000 in Canada, Tesla said on Thursday. In addition, the charging of electric cars over 10,000 miles (approx. 16,093 km) is offered free of charge.
Investors have already expressed concern that demand for Tesla cars is slowing. The group admitted in October to miss its sales target this year, but downplayed concerns about demand. Tesla also grants discounts in China.